Tag: customer lifetime value

Why your Business Needs to Focus on Customer Satisfaction

 

The customer is the lifeblood of any business; they are the biggest asset any organization can have. The success of a company is determined by how much value or satisfaction customers derive from the product or service the business supplies. Customer satisfaction is an essential factor in any organization as it helps foster long-term relationships between the business and the customer and determines revenue stream. 
Based on their experiences or satisfaction levels, customers make decisions on whether to repeat purchase or not. If previous experience were positive, customers would most likely repurchase that product. If otherwise, they definitely won’t revisit the product. 81% of satisfied customers are more likely to do business with you again if they have a positive experience. This proves that ongoing satisfaction leads to customer loyalty. 
Positive customer experience also impacts the bottom line of the company directly. The business retains its existing customers and acquires new ones through word of mouth. Satisfied customers share their experiences with others, recommending your company to their networks. A recent report estimates that 85% of new customers for small businesses are gained through word of mouth.  Advocacy has been proven to be the most efficient strategy in acquiring new customers for any business, and this can only be achieved if the customer derives satisfaction from the product or service supplied.

Customer satisfaction measures a company’s growth potential; it provides the metrics business owners can use to manage and improve their businesses. According to Michael Lebouef that “a satisfied customer is the best business strategy of all.” because it is a key differentiator and critical element of a business strategy. It provides the metrics business owners can use to manage and improve their businesses. According to Michael Lebouef that “a satisfied customer is the best business strategy of all.”

A report by Hubspot Academy states that 80% of companies believe that they deliver superior customer service while 8% of customers feel that they experience excellent service. The statement inherently means that some companies think their customers are happy with their services while customers think otherwise. That is why the need to measure customer satisfaction should not be overlooked. It is not enough to assume that since customers are buying from you, they are satisfied or loyal to you. That is why it is important to conduct periodic customer satisfaction survey to gauge your customers’ experiences and how they feel about your product or service. Surveys provide the information you need to identify problem areas associated with your product or service. Identifying problem areas are particularly important as it allows you check for areas that might lead to churn problems and revenue loss. 

Businesses who focus on customer satisfaction thrive better than customers who don’t. Keeping your customers happy and satisfied should be a priority as this will lead to more revenue for your business. 

How Loyalty Marketing Helps Your Business

Loyalty marketing is a term that has come to stay in the business world in recent times. How can you reward your consumers for being loyal to your products? Why should you even reward them? They need the products don’t they? Even necessity products have competition. Water is necessary for survival. So many companies manufacture bottled water but there is competition even within that industry. If water company A offers rewards for customers who patronize their brand and water company B keeps communicating just the benefits of drinking water which company do you think would have an increase in sales? Provided both companies offer the same value proposition. I think Water company A would win consumers hearts with their loyalty rewards.

How does Loyalty Marketing help your Business?

Win back customers

For several reasons, your original customers stray and find other products due to a number of issues. The other products may be more cost effective or your company did not invest the resources in looking after these customers when they were purchasing your products. Whatever the case may be, the best way to win back these customers is to run a loyalty marketing campaign. This entices them with the offerings but more importantly, you give them a chance to reconnect with a product they once loved and depending on whether your company has put in the work to improve the product, you would have won their hearts all over again. 

Build a Database of Loyalty

Do you think that company that supply you consumer information have given you enough data about your real consumers? If you run a campaign and have consumers potential and existing purchase your product, you know they were genuinely interested in the product. The information you acquire from running that campaign is more targeted because you know for a fact that these consumers purchased your product. Loyalty campaigns help your company build a targeted database and you can always approach these consumers when your company is launching a new product or you want to get real market feedback.

There are many other reasons why loyalty campaigns are useful for your business. It helps you build customer lifetime value amongst other things. Has your company run a loyalty campaign before?